Jakarta, CNBC Indonesia – PT Indika Energy Tbk (INDY) has signed a Scheme Implementation Deed to take over Nusantara Resources Limited (Nusantara) which manages the Awak Mas gold mine in Luwu, South Sulawesi through a mechanism Scheme of Arrangement.
This transaction plan is a strategic step for Indika Energy to increase exposure in the gold mining sector and strengthen the company’s business diversification.
Indika Energy will pay AU$ 0.35 per share for the 168,041,107 shares not yet owned by the company, bringing the total transaction to AU$ 58.8 million or the equivalent of US$ 45.3 million or approximately Rp 656.8 billion ( assuming an exchange rate of Rp. 14,500 per US$) for approximately 72% shares in Nusantara.
The proposed transaction is subject to the fulfillment of requirements, including the approval of Nusantara shareholders at the general meeting of shareholders scheduled to be held in September 2021, court approval in Australia, as well as the fulfillment of other conditions in the documents related to the proposed transaction.
This transaction plan also received full support from all members of the Nusantara Independent Board.
Indika Energy, and/or through its subsidiary PT Indika Mineral Investindo (IMI), currently owns approximately 28% of the shares in Nusantara and has a direct share ownership in PT Masmindo Dwi Area (Masmindo) which manages the Awak Mas gold mine of 25%. Through this transaction, Indika Energy will
fully control Masmindo, thereby effectively increasing the company’s exposure in the gold mining sector.
“This transaction is a strategic step for Indika Energy to strengthen business diversification in the non-coal sector which we have been working on for the last 3 years. We hope this transaction can create long-term value that is profitable for all stakeholders. Since we made the initial investment at the end of 2018 , reserves and resources than Masmindo has increased by 34% and 18% which are now at the level of 1.5 million ounces and 2.35 million ounces. We believe that the prospect of gold in the future is still good,” said Arsjad Rasjid, President Director of Indika Energy, as quoted from INDY’s official statement, Monday (28/06/2021).
As part of the strategic move, Indika Energy’s subsidiary, PT Petrosea Tbk (Petrosea) is also involved in the Awak Mas project to realize business synergies in the context of value creation.
Petrosea acts as contractor for the works Front End Engineering and Design (FEED) which will be continued with work negotiations Engineering, Procurement and Construction (EPC).
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